Page 49 - Tapering News Today

Quickly and not just the overall unemployment rate but when we start getting to the long-term unemployed. you know, what i worry about, were in a path where barring a shock to the economy one can, without being wildly optimistic, see a return to more normal levels of unemployment overall. but the danger is there could be a lingering long-term unemployment problem, particularly for young people who came out of school during the recession or for older workers who lost their jobs during the recessi...

>> internationally too. its a big problem for europe, a big problem for emerging markets. youre looking at turbulence the next six months. another thing to remember ben bernanke is probably going to leave his post and the obama administration will name somebody new and that will come with a lot of queasiness for the markets. >> bernanke tried to say were on the right path. just relax. >> hes been trying to calm them. theyve had this whole strategy of trying to explain themselves more to the mark...

With a statement like tapering is coming out soon. next week, no, you are not going to do that. then the market went back up again. now today which made no sense. markets could figure out what they meant. some of them said maybe taper. >> neil: maybe is that is guy grand design to confuse people? >> i dont think so. i dont think they know. that is the answer right there. the market has no idea what he is talking about. >> neil: if he were to put a date or time line, it is going to 58 to 70 to 60...

Said that it would be likely appropriate to start to taper, to start pulling back, dialing this back later this year. well hear from bernanke, taking questions from these economists to see if the latest jobs report, 200,000 a month or so, is enough to start tapering later this year. >> they have to taper eventually, guess everybody would agree. they have encouraged everybody to believe they can do it in a very modest way that will gauge the markets along with it as they do it. peter, well see. t...

For more on what to expect this week, lets check in with steve sedgwick live in london. >> im very well. the market. s are in fine state. europe following on the late rally on the u.s. markets. finally deciding that more jobs was a good thing. they also like to debate on friday because they werent sure if it meant more tapering. elsewhere were following the boeing story as well. it appears that this early stage nothing to do with mechanical error of the plane. the 777 is a workhorse for the comp...

>> look at the previous rounds in the economy, hasnt necessarily been going full bore when they cut off the quantitative easing program. the fed really wants wants to wp the program in early 2014. thats why they started the talk about tapering. wanted to set the stage. >> as you know the fed chairman has said thatm all this is data-dependent and will still have two more job reports before the september meeting. so watch the data. >> neil: forget this july high, then to the guys who still think w...

One way or the other. whats driving this? >> nothing about what were seeing should surprise us. one simple reason. the rules of the road have changed. bear in mind we have got qe3. until this qui sis, we never had qe1. qe is unknown. its not surprising. everything uncertainty, unknown, new rules, even the fed admits its experimental. tapering. i mean, these are all different concepts. so it is not surprising in this environment that when something is like bernanke speaking or when you have gold ...

Three-day gains since way back in january. lot of the bounce as some of the better economic data weve had here and one of the fed council members coming out and saying dont misinterpret what mr. bernanke is saying. tapering is not going to happen that quickly. so markets have a better tone. ill tell you someone who will be feeling the pain, jon corzine, the market regulator, saying we are leveling charges against you, this over the use of a billion dollars worth of customer funds. we talked abou...

Ease off accelerator. the fed has been buying $85 billion a month in bonds. that money rushes into the economy, fueling a huge rally in stocks, huge rally until this week. it keeps interest rates low on your home and car loans. but investors are nervous that tapering, taking the foot off the gas, will end the big gains. just the fear of ben bernanke easing up on the gas pedal sent the dow down 500 points wednesday and thursday. regardless if you own any stocks, your money is on the line. terry s...

Talking about where the economy is moving and we should be pleased. but there is a highly technical point, of course, that as accommodation or as tapering takes place, bond deals will rise. that requires investors to start thinking about where theyre going to put the money. if bond deals are rising, mortgages will rise and collerns will rise. >> you want to take that excess out. there are bubbles forming and the fed wants to stop that. >> but that is a de facto tightening, and there you will see...